With the explosion in Internet access and usage an increasing volume of business is occurring between individuals and firms, who have never seen each other, let alone engaged in any prior business transactions. Currently, a typical Internet user would have a browser installed in his local computer or server such as Internet Explorer™ or Netscape™. Using this browser, the user would access an Internet service provider, such as America-On-Line (AOL™), via a modem over the local public switched telephone network (PSTN). Once logged onto the Internet server, the user may utilize one of the many search engines, such as Yahoo™ or Lycos™, to specify search terms. The user may also use a web crawler, spider or robot to attempt to find a product, service or information desired. The search engine or web crawler would then respond with a list of web sites which matched the search terms the user provided. The user would then log onto a web site and view the products or services available for sale. If the user decides to buy the item from the web site, the firm operating the web site would frequently request a credit card number be entered by the user in order to pay for the product or service. Once the credit card charge is approved, the operator of the web site will then typically ship the item to the user. In the case where the item ordered is digital in format, such as software, graphics, text, video, or music, the item ordered maybe downloaded into the user's PC, server, lap top, palm computer or other processor-based system.
With the advent of cellular phones with and without wireless access protocol (WAP), a user may also “surf” the Internet and order goods and services directly through the WAP-capable phone or a processor-based system connected to the cellular phone in a similar manner as that used with a PC. Thus, a user may order goods and services from anywhere a cellular phone, satellite phone, or other type of mobile phone may operate. Therefore, a person could be sitting in the middle of a remote area, many miles away from another human being, let alone a telephone line, and order a video game from a web site on the other side of the planet and download it into his palm computer connected to a cellular or a standalone WAP or HTML (Hypertext Markup Language) capable phone and play the game on the spot.
However, the user or consumer may not know who is operating the web site and may have a legitimate fear of supplying a credit card number over the Internet to a stranger who may or may not deliver the desired product. Further, the user may be concerned that the agreed upon price will not be the price actually charged to his credit card. Also, there is no guarantee that the goods will be delivered if the web site operator is less than honest. Further, if the user is contacting the web site through a WAP-capable phone or processor connected to a mobile phone, the user may desire the digital product to be sent to another computer at a later time rather than downloaded to or through the mobile phone since such a digital product may be a large file and take a long time to download, which can be expensive because of the long access time.
Attempts to alleviate the foregoing problems and facilitate Internet commerce have been made by CyberCash, Inc. using CyberCoin™, CyberCash™, and InstaBuy™. CyberCoin™ enables a user or consumer to establish an account to be used in making small purchases ranging typically anywhere from 25 cents to ten dollars. A user of CyberCoin™ makes deposits to his account using a major credit card, such as for example Visa™ or MasterCard™, in small amounts. When making purchases, the user pays for the purchase with the CyberCoin™ account. Since, the purchases using CyberCoin™ involve a small amount of money and the web site operator does not receive an account number for a major credit card, the risk to the user is reduced. However, there is no guarantee of delivery of the product bought or that the correct amount will be charged to the CyberCoin™ account. Also, in the case of digital products, no provision is made for later delivery to an alternate computer system. Further, even though the amount of money in a CyberCoin™ is small, the risk of intercepting such an account number by a third party still exists even when an encryption algorithm is employed.
CyberCash™ is a service which offers a web site a more secure method of processing credit card purchases by linking the web site to the credit card processor using an encryption algorithm. This reduces, but does not eliminate, the risk to the user or consumer that a third party will intercept the credit card number since that number and authorization is encrypted. However, again the consumer is not guaranteed delivery of the product ordered or that the correct amount will be charged to the credit card. Also, in the case of digital products, no provision is made for later delivery to an alternate computer system.
InstaBuy™ is a mechanism in which a consumer may establish a password protected file of credit card numbers and other information. When making a purchase from a web site that is signed up for this service, the consumer enters the password and selects from the credit cards listed in his file to make the payment. Again, the transaction is encrypted to reduce, but not eliminate, the risk that a third party will intercept the credit card number. Further, since the required credit card number is entered once, the consumer does not have to enter it for every purchase. However, again the consumer is not guaranteed delivery of the product ordered or that the correct amount will be charged to the credit card. Also, in the case of digital products, no provision is made for later delivery to an alternate computer system.
Therefore, what is needed are a system and method for a user or consumer to order and pay for goods and services without the risk of a third party intercepting a credit card number or other method of payment. This system and method should also provide a mechanism for the user or consumer to pay for a product without supplying a credit card number, or other method of payment, to the content provider, but instead pays a trusted party. Further, this system and method should also lock or bind the seller of goods and services to a price which the user or consumer was initially given and thereby prevent the seller from charging a different price. This system and method should also provide a mechanism in which the consumer may be confident of actually receiving the ordered item. Still further, this system and method should be able to have the purchased digital item delivered to a location other than the location at which the order was placed and at a time the user requests the delivery.